Question Paper Booklet No. Time Allowed: 1 hour …

1 : 1 :BE-313 & FAA-3142/2013/BE & FAAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE Paper Booklet CODE : ABE(313) & FAA(314) Question Paper Booklet No. Roll No. : Time Allowed: 1 hour 30 minutesMaximum Marks : 200 Total Number of Questions: 100 (50 Questions in each Paper )Total No. of Printed Pages : 16 Instructions should use blue/black ballpoint pen ONLY to fill-in all the required information inOMR Answer Sheet and this Question Paper Sheet cannot be taken out from the Examination Hall by the examinees and the same isrequired to be properly handed over to the Invigilator/Supervisory staff on duty andacknowledgement be obtained for doing so on the Admit Card before leaving the are required to correctly fill-in the Question Paper Booklet Code and the QuestionPaper Booklet No.

2 (as mentioned on the top of this Booklet ) in the OMR Answer Sheet, as thesame will be taken as final for result computation. Institute shall not undertake any responsibilityfor making correction(s) at later Question Paper Booklet consists of two papers, each having 50 questions. All questions arecompulsory and carry TWO marks each. There will be no negative marking for wrong of this Question Paper Booklet MUST NOT be opened before the specified time of on opening of Question Paper Booklet , candidates should ensure that it contains100 Questions in total (50 Questions in each Paper ) and none of its page is case of any discrepancy, the Booklet shall be replaced at Question is followed by four alternative answers marked as A, B, C and D.

3 Candidates shallchoose one most appropriate answer to each Question and mark the same in the OMR AnswerSheet by darkening the appropriate circle only in the manner as prescribed in the OMR of more than one circle corresponding to any Question or leaving all the circles blankor overwriting/cutting any answer(s) shall be taken as wrong answer for computation of of answer(s) in the Question Paper Booklet shall not be considered in anycircumstance for award of marks. The Institute shall neither entertain any claim nor be liable torespond to any of the query in the aforesaid work, if any, should be done only on the space provided in this Question Paper The Copyright of this Question Paper Booklet and Multiple Choice Questions (MCQs) containedtherein solely vests with the Candidates are required to secure a minimum of 40% marks in each Paper separately and50% marks in aggregate of all the papers put together to Pass Foundation Programme (SIGNATURE OF CANDIDATE)

4 1 / 1BE-313 & FAA-314: 2 :2/2013/BE & FAAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINEDC ontd .. Paper 3 (Q. No. 1 to 50)BUSINESS ECONOMICSPART the following, which of thestatement is reflecting both positive andnormative economics (A) If the general price level goes up,borrowers gain but lenders gain more(B) Inflation hurts the poor more but theycan find employment opportunities(C) Inflation hurts the poor class more;therefore, the government shouldarrange to supply commodities atsubsidised rates to this section of thesociety(D) If the government supplies luxuriousgoods at cheaper rates, demand forsuch goods may economic problem arises primarily dueto scarcity of resources.

5 Scarcity ofresources is best reflected in the marketsupply of W. Wheat and at sea option is (A) WX(B) XZ(C) WY(D) economy, at present juncture can bebest represented as a (A) Mixed socialist economy(B) Mixed capitalist economy(C) Purely capitalist economy(D) Perfectly competitive market a fall in the price of a commodity-Xdemand for commodity-Y also falls. Thisbest represents (A) An exception to the law of demand(B) Universal application of the law ofsupply(C) Relationship between two goods thatare substitutes for each other(D) A market economy where pricingdecisions are difficult to functional relationship is given asfollows :QN = f (PN)Where QN stands for quantity demanded ofcommodity-N and PN stands for the priceof commodity-N.

6 The law of demand statesthat other variables remain constant, thereis an inverse relationship between price of acommodity and its quantity demanded. Itmeans that if (A) The price of a commodity goes up,quantity demanded of its substitute willfall(B) The demand for a commodity goes up,its price will also go up(C) The price of a commodity falls, itsquantity demanded will rise(D) None of the above.: 3 :BE-313 & FAA-3142/2013/BE & FAAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE consumption of each additional unit of acommodity is expected to give an increasingmarginal utility, total utility derived byconsumer will (A) Initially rise, but eventually fall(B) Rise at an increasing rate as long asmarginal utility keeps rising(C) Rise at an increasing rate as long asmarginal utility is more than zero(D) Not reflect any increasing case of a commodity for which no priceis to be paid, a consumer will reachequilibrium (A)

7 At any point on the vertical axis(B) At the point where the falling marginalutility curve cuts the horizontal axis(C) Only when the consumer is takenaway from the table(D) Only when the marginal utility beginsto of the following is not correct ?Normally, an indifference curve (A) Slopes downwards from left to right(B) Does not have a concave shape(C) Can touch any other indifference curve(D) Can cut through a budget figure above, the highest desired level ofsatisfaction is being represented by (A) Point A(B) Point B(C) Point C(D) Point the income elasticity co-efficient fordemand of a Commodity-X is +.

8 Withan increase in the consumer's income, shareof income spent on this commodity will (A) Rise(B) Fall(C) Remain same(D) Not be elasticity of demand for Commodity-Xand Commodity-Y is ( ) It meansthat (A) Commodity-X and Commodity-Y arenot related(B) An increase in price of Commodity-Yresults in a fall in the price ofCommodity-X(C) Commodity-X and Commodity-Y aresubstitute goods(D) None of the the three tables given below Input X Input Y Input X Input Y Input X Input Y1201101202102102163 4 3103 8 Table -1 Table-2 Table-3 Which of the above tables is showing fixedfactor proportions (A) Table-1(B) Table-2(C) Table-3(D) None of the / 2BE-313 & FAA-314: 4 :2/2013/BE & FAAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINEDC ontd.

9 Of the following figures is showingcorrect relationship between average productand marginal product under productiontheory ? Figure 1 Figure 2 Figure 3 Figure 4 Correct option is (A) Figure 1(B) Figure 2(C) Figure 3(D) Figure an increase in the units of a variableinput, total product keeps rising at a constantrate, marginal product curve will be bestrepresented as a (A) Rising straight line(B) Falling straight line(C) Vertical straight line(D) Horizontal straight the production theory, the optimum levelof output is represented at a point where (A) Marginal product curve begins to fall(B)

10 Average product curve begins to fall(C) Marginal product becomes zero(D) Average product becomes returns to scale are obtainedwhen (A) Fixed factors begin to yield increasingmarginal returns(B) Proportionate increase in output ismore than the proportionate increasein inputs.(C) The total output reflects an erraticbehaviour(D) None of the of the following type ofcommodities, normally, do not operate inan oligopoly market structure ?(A) High-brand luxury goods(B) Air-line services(C) High end beauty parlours(D) Metro for mobile phone-sets in Indiademonstrates the characteristics of a (A) Perfectly competitive market(B) Oligopoly(C) Monopsony(D) below is the short-run cost-sheet of aperfectly competitive firm, at equilibriumlevel of output :Average variable cost = `9 per unitAverage fixed cost = `2 per unitThe firm would be well advised to continueto produce if the per unit market price ofthe commodity is (A)`6(B)`7(C)`8(D)`10.